Meaning

noun an archipelago of about 100 islands in the North Atlantic off the north coast of Scotland

noun a small sheepdog resembling a collie that was developed in the Shetland Islands

originFrom Scots Shetland, Middle Scots Ȝetland, from Old Norse Hjaltland, by surface analysis, hjalt (“hilt”) + land (“land”). Andrew Jennings suggests the name derives from the tribal name Calēdonēs (as in Caledonia), considering the geographer Ptolemy already called the sea north of Scotland ὠκεανός Δουηκαλεδονίος (ōkeanós Douēkaledoníos); if this is correct, the borrowing into Germanic would need…

Etymology from Wiktionary, CC BY-SA 3.0